Hi every one her on bigger pockets
i am looking to by fixer upper houses in Newark NJ and i am looking into REO or short sale to can force appreciation in the property. and i came across a great deal and it really sounds to good to be truth
so i am trying to look over anything that could go wrong with a REO
so could some pls help me out how i can find out if there is a property lien on the property with out spending few hundred dollars for a tittle company to check it out
Most reo’s, and essentially all short sales are sold with clear title and title insurance, and it would be a condition in your purchase agreement.
Check with the tax collectors office
thanks Allan S for answering my questions. but may i ask what did you mean with Check with the tax collectors office
are they know every lien on the property? if so why are ppl still paying money for the title company
@Michael Smith as @Wayne Brooks mentioned REOs are typically sold free and clear of liens. If you go forward with the purchase and you are financing it you'll have to get title insurance anyway and any liens would come up in the title search. There was actually some sort of weird lien that popped up on an REO I purchased. The lender paid it and we proceeded forward.
@Michael Smith When you buy a short sale or REO you will get a clean title from the title company. Now if the property has open permit or violations this is separate from liens and should've been negotiated with your Purchase contract. I doubt any bank will correct open permit or violations since they sell properties "as is". Usually the open permit and violations will be excluded from the title insurance. You can check with the city building department by calling them or going online and ask them if the property has any open permits or violations. This would be a good start.
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